๐ $LIT breaks through the 3 level.
Large numbers of orders tend to cluster around round-number levels, so letโs first talk about why these levels can matter.
Even among round-number levels, the rounder the number, the more people tend to watch it. For example, major levels like whole thousands or hundreds of thousands attract more attention than ordinary round numbers.
Volatility can increase around these levels, so leveraged traders need to leave more room. A stop-loss placed too close to a round-number level can easily get triggered.
The point of understanding this indicator is to avoid being spooked by a single number, not to use it to predict price movements accurately.
#LIT
Large numbers of orders tend to cluster around round-number levels, so letโs first talk about why these levels can matter.
Even among round-number levels, the rounder the number, the more people tend to watch it. For example, major levels like whole thousands or hundreds of thousands attract more attention than ordinary round numbers.
Volatility can increase around these levels, so leveraged traders need to leave more room. A stop-loss placed too close to a round-number level can easily get triggered.
The point of understanding this indicator is to avoid being spooked by a single number, not to use it to predict price movements accurately.
#LIT